C153716 Refinancing Approval Letter

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Colorado Water. Conservation Board Department of Natural Resources 721 Centennial Building 1313 Sherman Street Denver, Colorado 80203 Phone: (303) 866-3441 FAX: (303) 866-4474 STATE OF COLORADO . ~.,- ~ Roy Romer Governol December 30, 1997 James S. Lochhead Executive Director, DNR Daries C. Lile, PE. Director, CWCB Board of Directors Purgatoire River Water Conservancy District 314 West Main Street Trinidad, CO 81082 Re: Trinidad Project Refinancing Gentlemen: I am pleased to inform you that at the November 24, 1997 meeting ofthe Colorado Water Conservation Board, the Board recommended an increase of $500,000 in the Purgatoire River Water Conservancy District's authorization for the purpose of retiring the District's existing indebtedness to the Bureau of Reclamation for the Trinidad Reservoir Project. The lending rate for the additional $500,000 increment will be 4.00 percent and the term of the loan is not to exceed 30 years. (The initial $500,000 authorization was approved by the Board in November 1996 at 3.75 percent for up to 30 years.) The Board's action on the loan will be included in the 1998 CWCB legislation and is subject to authorization by the General Assembly. If approved, the total authorized amount for the Trinidad Project Refinancing would be $1,000,000. The Board's recommendation was made subject to the following conditions: 1. Prior to entering into a contract for a CWCB loan, the District will provide the CWCB staff with: . documentation as to the Congressional and Bureau of Reclamation authorization for retiring the existing loan, . the exact authorized payoff amount for the existing loan, and . financial projections and documentation, as may be requested by staff, demonstrating that District revenues will be adequate to cover all foreseeable operating and maintenance expenses as well as all debt service likely to be incurred in the foreseeable future.